Description
Solution
3.0 Category Analysis used to Sourcing Approach
3.1 Kraljic Matrix Analysis
As part of category analysis of sourcing approach, Kraljic Matrix can be employed (Perdana & Mulyono, N2021). Considering ROSHN organisation case, various sourcing strategies, classification of appropriate suppliers products and services, weak areas and how to reduce supply chain disruptions.
Figure 1:Kraljic Matrix Analysis Summary
Source: Lenarčič and Faganel (2021)
For the leverage items, different suppliers are available as an alternative. This category hence best adopt multiple sourcing strategy. The Design Building category is positioned in this category where multiple sourcing enhances strategic relations with risks of buyers reduced. This is different from strategic items which encounter issues with suppliers switching and important for managing all costs (Charles & Ochieng, 2023). For this category it is used in ROSHN in facilitating resourcing planning for identifying the entire risks encountered.
Considering the bottleneck items category,……..
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- In summary, in this report, sourcing approaches have been evaluated.
- By focusing on ADNOC fuel main category of spend and other spend categories, the sourcing approaches have been identified to include multiple, single, dual, and sole.
- In ADNOC, the procurement process includes a detailed process that is defined by the transitioning of sourced products and services to the organisation.
- The identified spend categories are strategic, leverage, bottleneck, and non-critical items. Also, the products have been categorised into those with high-profit implications, risks incurred, and reliable.
- In the identified area of spend, multiple sourcing is preferred due to the critical nature of the identified spend category.